In response to a recent statement from Randy Lundin, Mayor Johnson has issued the following statement:

I was very surprised to see the post on social media attributed to Randy Lundin stating the Lundin Family is abandoning their pursuit of a conservation easement on their farm located behind the Zermatt in Wasatch County. The City provided the family’s attorney with closing documents over three weeks ago without response.   Meanwhile, the City has been in touch with Utah Open Lands, who has a representative from the National Resources Conservation Service (NRCS), a federal funding agency, coming to look at the Lundin property today, all as part of continuing efforts to preserve the Lundin farm. Midway remains ready to proceed.

I thought this may be a good opportunity to clarify some apparent misunderstandings, particularly in light of Randy Lundin’s broad statement warning against pursuing a conservation easement in Midway, which undermines the City’s ongoing commitment and efforts to protect open space in our community.

First point of clarification:  In a typical conservation deal, and in all the conservation easements in which the City has participated to date, money is given to the landowner only when the conservation easement is recorded.  In this case, the Lundin family has asked that the money from Midway City ($1 million) and from Wasatch County ($2million) be paid in advance but that the conservation easement not be recorded for a period of up to three years to address circumstances unique to the Lundins and outside the control of the City.     Since the money is for a recorded easement, which the City may not be able to record for years, the parties agreed that collateral would be provided for the advance payment.   The collateral would be held in escrow until the easement is recorded. 

The parties discussed using the land as collateral, but this option became impossible when the Lundins advised last August that a lawsuit had been filed against them and the property. Instead, the parties agreed that water shares, which were not part of the lawsuit, would be held in escrow for so long as the conservation easement is held in escrow. When the conservation easement is recorded with clean title, the water shares would be released from escrow. Title to the water shares would not be changed while held in escrow.  If for any reason the conservation easement is not recorded and the advance money paid by Midway City and Wasatch County cannot be returned, THEN AND ONLY THEN would the water shares transfer to Midway City and Wasatch County to repay the advance payment of open space funds. This was not a last minute change. It was discussed months ago, approved months ago, and was necessitated by circumstances and a lawsuit over which the City has no involvement or control.

Second point of clarification:  The reason the Lundin property cannot be used as collateral is the lawsuit against the property.  The case is pending in state court and to my knowledge has not been dismissed or reached a resolution.  This means the land currently does not have clear title which is MANDATORY for any conservation agreement and funding. The City and County simply cannot advance taxpayer funds to the Lundins without holding sufficient collateral to make the City and County whole should the lawsuit or something else interfere with getting the conservation easement recorded.

Third point of clarification:  The failure of this deal to reach resolution has nothing to do with Midway City staff. This is a negotiation between the Lundin Family, the City Council, and the Wasatch County Council. Midway staff has worked tirelessly to advance this project, but the City Council and the County Council made it clear that they could not advance $3,000,000 in open space bond funds without appropriate security, which for many months has been understood to mean water shares, not the property, because of the ongoing lawsuit and delayed recording of the easement as requested by the Lundins.  Per the City Council’s direction, the City attorney drafted and forwarded to the Lundins and their attorney weeks ago the closing documents, including escrow agreement for the water. I have been advised he has received no response or objections

Midway City recognizes and appreciates the Lundins’ efforts and sacrifices to preserve their farm, that they have encountered hurdles along the way, and that it has been a long and exhausting process. While the City respects the decision of the Lundin family as to whether to proceed, repeatedly accusing the City of “changing the deal” or standing in the way is simply not supported by the facts.  In conclusion, Midway City remains committed to working toward a conservation easement on the Lundin property if the family wishes to proceed, with the understanding that the City simply cannot put taxpayer money at risk. If the family needs the money today, without providing a recorded easement, then they need to provide collateral, which cannot be the land subject to an ongoing lawsuit. Otherwise, the parties will have to wait until the lawsuit is resolved.  We have offered to meet with the Lundins and their attorney to address any outstanding questions or issues. We continue to be open to discussing alternate ideas to secure the funds.  I hope the above clarifications demonstrate that the present hurdles are NOT of Midway City’s making, and that there continues to be a way to proceed if the Lundin family chooses to do so.